Can I Buy GLD in My IRA?

Precious metals can add some shine to an IRA, but investors must remember they should only serve as one component of their portfolio. Gold and silver investments can be very volatile investments that fluctuate in price significantly over time.

GLD is a paper asset, meaning investors could potentially benefit from an increasing gold price while simultaneously incurring losses due to a slump in gold markets.


Purchases of physical gold or a physical precious metal ETF in an IRA can provide an effective means of diversifying a retirement portfolio. But be aware that gains from such investments are taxed differently than stocks or bonds.

Physical gold and ETFs are considered collectibles, meaning any profits from selling them for over one year must be subject to tax at a long-term capital gains rate of 28% instead of the 0% ordinary income rate applicable for most stocks and bonds.

However, when purchasing physical precious metals investments via a self-directed individual retirement account (IRA), your earnings are protected from taxes until withdrawal at age 59.5. This can help avoid paying taxes on assets while they’re still within your hands – although be mindful that investing can still incur losses; be sure to review your holdings regularly to assess potential opportunities and risks.


Due to the highly unpredictable precious metals market, regular evaluation of your IRA assets is important for monitoring performance. Doing this enables you to quickly respond to any price movements that might impede its value or have any impact on its investment performance.

Many IRA investors find the easiest way to gain exposure to precious metals is via an exchange-traded fund such as GLD or SLV, which tracks gold and silver bullion prices. Instead of purchasing individual coins and bars directly, investing in GLD shares allows for diversification while eliminating storage fees or any potential hassles that might come along with ownership of physical coins and bars.

IRS letter rulings clarify that IRAs can invest in precious metal ETFs like GLD and SLV that meet certain purity and liquidity criteria, providing investors with an alternative investment vehicle without all the burdens involved with physical ownership and transport of precious metals. This makes purchasing shares in these metals-based ETFs an attractive solution for investors seeking exposure to precious metals without owning and transporting physical coins or bullion directly.


Custodians are financial firms that oversee all investment activities and administrative responsibilities for your IRA. Most gold IRA providers recommend or require customers to use certain custodians; you may also find one through Retirement Industry Trust Association’s website.

GLD shares trade similarly to stocks, so their market risk and price fluctuations can fluctuate accordingly. Furthermore, as GLD sells gold to cover expenses over time, its amount backed by each share decreases over time.

When an Authorized Participant (AP, or broker-dealers that provide a market for GLD) receives an order to create or redeem GLD shares, it calls in an equivalent number of London Good Delivery bars from Bank of New York Mellon as trustee and custodian and transfers ownership over it subsequently stored at its vault in London by Bank of New York Mellon.


Purchases made via an Individual Retirement Account require storage outside your home as per IRS rules – they cannot hold precious metals in personal possession and therefore an IRA cannot do this either.

An IRA must be stored with an IRS-approved depository that offers adequate insurance and has an excellent track record. Furthermore, these services should not charge excessive account management and storage fees and must offer transparent pricing structures.

Birch Gold Group stands out as an ideal IRA-approved gold dealer, boasting an outstanding BBB rating and longstanding reputation as a reliable bullion custodian, providing transparent pricing with flat annual fees guaranteed – ideal for streamlining investment processes more effectively! Additionally, they allow investors to rollover existing IRAs or employer sponsored retirement accounts directly into gold IRAs without additional deposits needed – making the investing process simpler overall.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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